School Bus Contractors

STA reports increased activity in privatized busing

WALL, N.J. — Student Transportation of America Ltd. (STA) has reported seeing an increase in the number of school districts interested in transitioning from public to private school bus fleets.

"Budget constraints are forcing local municipalities, school districts and state officials to decide between cutting programs, laying off teachers or purchasing new school vehicles and funding in-house transportation departments," said Denis J. Gallagher, STA chairman and CEO. "We're pleased to see the more these government operations learn about contracted transportation services, and the true cost of their own operations, in time and money, the more they see the economic and operating advantages that we can bring to their already depleted municipal budgets.”

Gallagher said that STA has completed several successful conversions in the past few years and has recently submitted several new bid and conversion proposals to school districts.

According to recent SCHOOL BUS FLEET research, about 72 percent of school buses in the U.S. are owned by school districts. About 26 percent are contractor-owned, and the remaining 2 percent are state-owned.

Comments ( 1 )

Liz Lacey-Osler

| about 7 years ago

Dear Student Transportation of America,
As I observe the transition from public to private school bus transportation for our students and local workers in my community, I am not convinced that this is the best way to go. The company that my district is contracting with will offer lower pay and fewer if any health benefits as well as 0 pensions to drivers that feel they must transition to the new company. After much research about national safety issues about this company, I am also not convinced that our students will be as safe as they were with the committed and loyal public service employees that are also local residents of our community have been. This seems to be happening with privatization all over the U.S. Contracts are made with districts desperate to save money, and patch their budgets.
In the short term there seems to be a savings, but in the long term, the loss of income and benefits to previous employees as well as the health of the community as a whole is threatened. In an article published June 18th, 2011, I read that you emphasized commitment to local businesses and keeping profits in the U.S. And that you also committed to your employees advancement and opportunity as workers through education reimbursement programs and scholarships. I am wondering do you also offer them comparable income and benefits for a decent quality of life in the present? And why have you not yet looked at Eastern Pennsylvania for contract opportunities (if this has not yet been the case)? I have not checked your NASDAQ rating, but will do so.
Thank you for your time. If you compensation package is in preservation of fairness in employee treatment and ethical and equitable business practice, it seems that you surpass by far, the current company being contracted, making privatization a little easier to swallow in a community with long time demographics have shown public education services, health, and social services to be a fair percentage of o